If you are one of the many Australians who hold more than one superannuation account, then there are sound reasons to consider combining your superannuation balances.
Why consolidate super?
It may seem easier to just leave your super where it is, especially if you’re not considering retirement any time soon, but the reality is that it could be costing you dearly if your super is being held across multiple accounts. You may wish to consider the following:
- Lower costs – with multiple superannuation accounts, you pay multiple fees and charges. Plus, you could be paying fees for similar features, such as insurance, across your various accounts. Super balances can shrink quickly on inactive accounts, where fees continue to be deducted.
- Ease of management – instead of dealing with paperwork for multiple superannuation accounts, you could have a single set of account information and statements, and one online account login to remember- making easy to keep track.
- Investment growth – you may not be maximising your superannuation’s investment potential when balances are spread across accounts. Your super savings can work harder in a single account.
How do you combine your accounts
It’s not difficult to bring all of your superannuation balances into a single account, but it does require a little organisation. There are also some important points to consider before you start the process, including:
- any termination fees to close other accounts
- the level of insurance that you need
- the type of super accounts that you hold – if you’re in a defined benefit fund, then you’ll need to seek advice.
Once you’ve decided to combine your superannuation accounts, you will need to select the superannuation fund that best fits your goals and needs. This could be an existing fund or a different fund altogether. If you’re going to go to the effort of combining your superannuation, you need to be sure it is working to your best advantage.
Start by comparing the fees charged, the investment options available, the insurance options, service levels offered, and whether the fund will accept your employer contributions. You might also choose to seek advice if your circumstances seem complex.
If you select a new fund, then you’ll need to open an account. Be sure to let your employer know that you are changing funds; they need to know where to pay your super. You will then need to rollover your other superannuation balances into the fund that you have chosen. Most superannuation funds will have an easy process for superannuation rollovers or do it on your behalf.
Finding lost super
Finally, if you think you might have lost super, you can search for it through the ATO using a MyGov account; or you can request to search the lost members’ register and unclaimed super money register.
Consolidating your super can, not only make your life easier, it can also boost your savings in preparation for retirement.
Find out more about combining your super at AustralianSuper
This article has been sponsored by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, the Trustee of AustralianSuper ABN 65 714 394 898. The views expressed are those of YourLifeChoices and not necessarily the views of AustralianSuper. The article contains general information and you should consider your personal financial situation before making a decision.
